Question

Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.

Account Title	Debit Amount Rs	Credit Amount Rs
Purchases and Sales	3,52,000	5,60,000
Return inwards and Return outwards	9,600	12,000
Carriage inwards	7,000
Carriage outwards	3,360
Fuel and power	24,800
Opening stock	57,600
Bad debts	9,950
Debtors and Creditors	1,31,200	48,000
Capital		3,48,000
Investment	32,000
Interest on investment		3,200
Loan		16,000
Repairs	2,400
General expenses	17,000
Wages and salaries	28,800
Land and buildings	2,88,000
Cash in hand	32,000
Miscellaneous receipts		160
Sales tax collected		8,350

Closing stock Rs 30,000.

Answer 1

Trading Account as on March 31, 2017
Dr.												Cr.
Particulars						Amount Rs	Particulars					Amount Rs
Opening Stock						57,600	Sales			5,60,000
Purchases			3,52,000					Less: Return Inwards		(9,600)		5,50,400
	Less: Return Outwards		(12,000)			3,40,000	Closing Stock					30,000
Carriage Inwards						7,000
Fuel and Power						24,800
Wages and Salaries						28,800
Profit and Loss (Gross Profit)						1,22,200
						5,80,400						5,80,400

Profit and Loss Account as on March 31, 2017
Dr.			Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Carriage Outwards	3,360	Trading (Gross Profit)	1,22,200
Bad Debts	9,950	Interest on Investment	3,200
Repairs	2,400	Miscellaneous Receipts	160
General Expenses	17,000
Net Profit	92,850
	1,25,560		1,25,560

Balance Sheet as on March 31,2017
Liabilities				Amount Rs	Assets		Amount Rs
Capital			3,48,000		Land and Building		2,88,000
	Add: Net Profit		92,850	4,40,850	Investment		32,000
					Debtors		1,31,200
Loan				16,000	Closing Stock		30,000
Creditors				48,000	Cash in Hand		32,000
Sales Tax Collected				8,350
				5,13,200			5,13,200